PJSC M.Video, Russia’s leader in e-commerce and retail of electronics and home appliances (Moscow Exchange: MVID), reports condensed consolidated financial results prepared in accordance with International Financial Reporting Standards (IFRS) for the six months ended June 30, 2026. The Company's total online sales amounted to RUB 63.4 billion including VAT, reaching a 41.5% share of the Company's total turnover, compared to 32.2% at the end of 2025. The growth in online's contribution to the Company's GMV was driven by the active scaling of the M.Video marketplace, which increased its turnover fourfold year-over-year by the end of the reporting period, exceeding RUB 17.7 billion — 11.6% of total turnover. Selling, general and administrative expenses (SG&A), excluding depreciation, amounted to RUB 21.7 billion, down by RUB 2.6 billion, or 10.5% year-over-year, from RUB 24.2 billion. The decrease in expenses reflects the Company's ongoing efforts to improve internal efficiency and reduce operating costs, including optimization of the retail network and the new head office structure.
M.Video Chief Operating Officer, Anatoly Mokhov:
‘The first six months of 2026 was the first full half-year of M.Video's large-scale transformation. We are moving from a classic capital-intensive retail model, in which expanding the assortment requires constantly increasing purchases and inventory, to a hybrid platform model in which owned inventory, agency supply, and the marketplace operate as a single system. The first results of this restructuring are already showing up in our operating results. We are reducing our own inventory while continuing to expand the marketplace assortment several times over. This is precisely the economics we want to build: the assortment and the range of options available to customers grow without a need to proportionally increase our own inventory and reliance on borrowed capital.
At the same time, the M.Video marketplace is significantly growing its base of new sellers, who see the platform as a promising new alternative sales channel. The next stage is developing the open storefront model. Our goal is not to confine partners' assortment exclusively within M.Video's own channels, but to give sellers the ability, through a single technological integration, to sell simultaneously across multiple storefronts — including other marketplaces, banking platforms, and the platforms of other omnichannel retailers.
We are building an open platform architecture in which the storefront, logistics, and seller can operate independently of one another. API-based integration will make it possible to scale partners' assortment to external platforms without having to build separate technological and logistics infrastructure each time.
For us, this is a fundamentally important element of the platform model: M.Video's existing technological, logistics, and retail infrastructure should work not only for our own sales but also help partners increase turnover across different channels. As a result, the seller gains additional opportunities to scale their business, the customer gets a wider assortment, and M.Video can grow the platform's turnover without a proportional increase in its own inventory and working capital needs’.
ANALYSIS OF THE ANCHOR CONSUMER MARKET FOR HOME APPLIANCES AND ELECTRONICS
In the first half of 2026, the Russian market of electronics and home appliances, which serves as the anchor market for the Company, maintained mixed dynamics amid subdued consumer activity and a savings-oriented behavioral strategy:
- Smartphone sales in Russia fell by 7.8% in unit terms and 5.9% in value terms year-over-year in the first half of 2026. The decline in smartphone demand is global in nature. According to data from Counterpoint Research, global smartphone shipments fell 7% year-over-year in the second quarter of 2026. The market is under pressure from rising component costs, primarily memory, and more subdued demand in mass price segments. At the same time, in value terms the global market grew by 8%, driven by rising average device prices and steady demand for premium models.
- The laptop market also continued to decline — down 19.6% in unit terms and 13.5% in value terms.
- The smartwatch market showed a significant decline in the first half of 2026: sales fell by 13.7% in unit terms and 11.5% in value terms. The negative dynamics are linked to category saturation, a lengthening device replacement cycle, and overall subdued consumer demand. At the same time, the decline in ruble terms was less pronounced than in unit terms, indicating a rise in the average cost of devices purchased.
- In January–June 2026, 1.49 million tablets were sold in Russia, up 3% compared to the same period last year. In value terms, the market grew by 5.5%, reaching RUB 29.2 billion.
- TV sales grew by 10% in unit terms and 2.3% in value terms.
- The major household appliances market grew by 7.8% in unit terms, while its monetary volume declined by 1.5%.
- The small household appliances market grew by 14.3% in unit terms and 4% in value terms in the first half of 2026. The higher growth rate in units relative to rubles reflects a shift in demand toward more affordable models and a decline in the average cost of appliances purchased.
In other words, the recovery of the household appliances and electronics market remains uneven: growth in certain categories is combined with a continued decline in demand in a number of the largest segments. Consumer behavior continues to be shaped by the high cost of borrowed funds, the appeal of a savings-oriented model, and longer device replacement cycles, as well as growing demand for repair as a rational alternative — according to data from the Company's own service division, M.Master, demand for repairs grew by 159% in unit terms and 230% in value terms in the period from January to June 2026 compared to the same period last year.
Thus, the overall situation in the electronics and home appliances market once again confirms the timeliness of M.Video's transition to a multi-category marketplace model featuring an open storefront, its own well-developed retail network, and a network of partner pick-up points (PVZ).
KEY FINANCIAL RESULTS FOR THE FIRST HALF OF 20261
The Company's total sales (GMV)2 for H1 2026 amounted to RUB 152.6 billion (including VAT), down by 26.9% from the prior-year figure. Revenue amounted to RUB 108.2 billion (-36.8% year-over-year), reflecting the transition to an agency sales model, under which only the agency commission — not the total price of the goods — is recognized in revenue. This dynamic reflects the Company's ongoing business model transformation, including its expansion into new segments with a lower average check, a substantial reduction in the total number of retail outlets, and continued pressure from the high key interest rate on demand in a number of key household appliance and gadget categories, as consumers shift toward a savings-oriented behavioral strategy.
The Company's total online sales3 amounted to RUB 63.4 billion including VAT (-6% year-over-year), reaching a 41.5% share of the Company's total turnover, compared to 32.2% at the end of 2025. The growth in online's contribution to the Company's GMV was driven by the active scaling of the M.Video marketplace, which increased its turnover fourfold year-over-year by the end of the reporting period, exceeding RUB 17.7 billion — 11.6% of total turnover. New categories showed the strongest growth on the platform in the first half of the year: compared to the same period last year, furniture turnover increased almost 13-fold, beauty more than 11-fold, hobby and creative goods almost 10-fold, pet products almost 5-fold, children's products more than 10-fold, entertainment almost 11.5-fold, and garden and dacha goods more than 8.5-fold. Significant growth was also seen in the construction and renovation, electronics, home goods, auto products, plumbing, clothes and footwear, and major household appliances categories. For full-year 2026, M.Video expects the contribution of new categories to overall turnover to continue strengthening.
The number of sellers on the M.Video marketplace exceeded 12,000. The highest monthly figure for new registrations was reached in July 2026, when more than 1,600 partners joined the platform. Registration growth accelerated in the second half of the month and continued into August. Major market players in categories outside M.Video's core focus have also begun to view the platform as a new sales channel — for example, Divan.ru, Holodilnik.ru, and Askona are already selling on the marketplace, and in August Stockmann joined the marketplace as well.
The Company's retail sales amounted to RUB 89.2 billion, down by 36.8% year-over-year, amid a substantial reduction in the total number of offline outlets as a further step in the transition to a multi-category marketplace model — as of June 30, 2026, the combined M.Video and Eldorado network numbered 638 stores, compared with more than 1,100 stores in the same period a year earlier. At the same time, the Company is expanding its network of pick-up points: in addition to 50,000 CDEK, Yandex Market, and 5post pick-up points and parcel lockers, M.Video has opened 800 partner pick-up points under its own brand. The key objective is to integrate all customer touchpoints into a unified customer and logistics network, and to achieve an optimal balance between the retail network, partner pick-up points, and delivery service.
Gross profit amounted to RUB 4.1 billion, or 3.8% of revenue, compared to RUB 27.0 billion, or 15.8% of revenue, a year earlier. The decline in margin was mainly driven by an increase in spending on promotional activities and discounts on goods to stimulate purchases on the marketplace platform, as well as active efforts to attract customers to retail stores amid declining consumer demand, growing competition, and other factors.
Selling, general and administrative expenses (SG&A), excluding depreciation, amounted to RUB 21.7 billion, down by RUB 2.6 billion, or 10.5% year-over-year, from RUB 24.2 billion. The decrease in expenses reflects the Company's ongoing efforts to improve internal efficiency and reduce operating costs, including optimization of the retail network and the new head office structure.
The EBITDA indicator amounted to -RUB 14.7 billion under IFRS 16. This dynamic is primarily related to the decline in gross profit, which was partially offset by the reduction in selling, general and administrative expenses.
The Company's net loss amounted to RUB 36.1 billion, compared to RUB 25.2 billion a year earlier. The financial result was pressured by the decline in gross profit and the continued high cost of servicing debt. At the same time, financial expenses decreased to RUB 22.4 billion, compared to RUB 26.6 billion a year earlier.
The Company's net operating cash flow moved into positive territory, amounting to RUB 5.3 billion, compared to an outflow of RUB 27.4 billion in H1 2025. This represents an improvement of RUB 32.7 billion year-over-year. Cash from operating activities before interest and tax paid amounted to RUB 16.5 billion, compared to a negative RUB 4.4 billion a year earlier. The improvement in cash flow was driven, among other things, by working capital management: the reduction in inventory generated RUB 12.4 billion in cash flow, while receivables and advances issued generated a further RUB 13.5 billion.
The Company's inventory amounted to RUB 70.6 billion as of June 30, 2026, down by RUB 12.1 billion, or 14.7%, from RUB 82.7 billion at the end of 2025. The decline in proprietary inventory reflects the Company's transition to a less capital-intensive business model: the largest suppliers are being shifted to an agency-based arrangement, and the Company is increasing sales of third-party (3P) assortment, allowing it to expand its offering without needing to purchase all goods upfront.
The Company's loans and other financial liabilities amounted to RUB 159.2 billion as of June 30, 2026, compared to RUB 152.2 billion at the end of 2025. At the same time, there was a significant restructuring of the debt portfolio's maturity profile: the long-term portion of loans and other financial liabilities increased to RUB 26.7 billion from RUB 2.2 billion at the end of 2025, while the short-term portion decreased to RUB 132.5 billion from RUB 150.0 billion.
The Company carried out a restructuring of its credit portfolio, as a result of which the vast majority of credit obligations were extended up to seven years.
The Company attracted 1.5 million new customers, growing its customer base to 82 million people. In addition, in the first half of 2026, the Company managed to reactivate more than 1.4 million customers who had not used M.Video's sales channels for over two years.
KEY EVENTS AFTER THE REPORTING DATE
- MV FINANCE LLC (a subsidiary of PJSC M.Video) redeemed its series 001P-05 exchange-traded bonds (ISIN: RU000A109908) in the amount of RUB 3.75 billion, along with coupon income of RUB 1.649 billion. As a result, total payments under the issue amounted to RUB 5.399 billion. On August 6, 2026, MV FINANCE LLC paid bondholders the income for the final coupon period, as well as the nominal value of the bonds.
- The Bank of Russia decided to approve the state registration of an additional issue and to register the document containing the terms of placement of securities of PJSC M.Video (Moscow Region) by closed subscription. The additional securities issue was assigned registration number 1-02-11700-A-005D.
- M.Video and Yandex combined advertising capabilities on the Yandex Retail Media platform. The companies began integrating the advertising surfaces of the M.Video omnichannel marketplace — its website and app — into the Yandex Retail Media platform. Advertisers will now be able to launch display advertising and product card promotion on M.Video's platforms directly through the Yandex Direct promotion service.
- M.Video announced an expansion of its on-site service offerings for customers, as a continuation of its strategy of expanding into new product categories. Within the M.Master service division, in addition to on-site installation, repair, removal, and disposal of household appliances and electronics, customers can now also order kitchen and furniture assembly, as well as plumbing and electrical work, and window and door installation. In addition, the partner “Ecotaxi” service is being expanded, allowing M.Video customers to order removal for further eco-friendly disposal not only of household appliances and electronics, but also of old furniture, windows, pianos, and other large household items.
- The Company fully merged the online channels of M.Video and Eldorado. As of July 1, the Eldorado website and mobile app became part of M.Video's unified digital platform. The Company also substantially updated its mobile app, making it faster and simpler to use.
Link to photos:
https://disk.yandex.ru/d/zlS0reJcD2QFwg
1 Hereinafter, M.Video's financial results are presented in accordance with IFRS (IAS) 16, unless otherwise indicated.
2 The GMV (Gross Merchandise Value) indicator includes purchases at retail stores (including click-and-collect orders), paid and home-delivered online orders, as well as paid shipments from warehouses to legal entities. Purchases in stores and online orders may be made by individuals and legal entities. GMV includes sales of goods and services, which may be either proprietary or agency-based. GMV includes VAT, is net of discounts provided to customers, and is net of returns made during the reporting period. GMV is not a measure of the Company's revenue.
3 In the reporting period, compared to the same period of the prior year, sales through the seller's mobile application have been excluded from the online channel. This particular channel had a significant impact on the resulting online sales share. The updated methodology covers the Company's sales through its own online channels (websites and mobile applications of the M.Video and Eldorado brands), as well as sales on third-party marketplaces. Year-over-year comparisons are made taking these changes into account and are calculated on a net basis.